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notes 3 - savings for customers Ex UPS Their ability to...

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05:10 Competitive Advantage  within  an organization Functional IS Accounting Marketing and Sales Etc Cross-Functional IS CRM ERP EAI Competitive Advantage  across  an Organization Supply Chain Ex: Sam’s Club 25% of their money comes from the stuff you buy; 75% comes from what you pay from  becoming a member they’re looking to keep you coming back as a customer; they keep prices low to keep  you coming back Company made $100 million dollars/yr on cashews Changed canister to square shape to save freight costs, could ship 2x as many in the  same truck  costs cut in half 
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Unformatted text preview: savings for customers Ex: UPS Their ability to deliver stuff around the world, track them, on time, etc is logistics Ex: iPhone iPhone 4 (w/no discount)= $600. The pieces inside an iPhone 4 = $187. For every iphone apple sells, make $400; parts come from all over the world When you’re a company, every part of your value chain costs money When you expand that to a supply chain, only one company in that chain makes money Strategy A whole chain of companies working together through IS Considerations 05:10 05:10...
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